Philippine Energy Policy Wiki

DC2023-05-0015 (On-Grid RPS Rules Amendments, May 2023)

Status
operative
Confidence
high
Effective date
2023-06

Title: Prescribing the Amendments to Department Circular No. DC2017-12-0015 or the Renewable Portfolio Standards (RPS) Rules for On-Grid Areas Issued: 23 May 2023 Signed by: Secretary Raphael P.M. Lotilla Pages: ~12 pages Source: raw/regulations/dc2023-05-0015.md (already cleaned — text-layer PDF via pdftotext) Amends: DC2017-12-0015 (original On-Grid RPS Rules) Related instruments: DC2022-09-0030 (Adjusted Km 2.52%); DC2021-11-0036 (GEAP); DC2022-06-0019 (REM I-COP)

Document Purpose

A targeted amendment circular (13 sections) to the 2017 on-grid RPS rules. Codifies the RPS requirement formula, clarifies compliance period, adds GEAP as a formal compliance mechanism, mandates least-cost RE procurement via CSP, expands carry-over procedure, and directs ERC to issue a cost recovery regulatory framework.

Key Amendments by Section

Section 1 — New Definition: “Generation Mix” (§5(k)) “The combination of the various fuels and technologies used to generate electric power to supply the electricity demand of a given geographic region.” Anchors the 35%/50% aspirational targets to a defined term.

Section 2 — Amended: “Net Electricity Sales” (§5(n)) Redefined as “actual/metered energy purchased/supplied less system losses and own-use reckoned from 26 December of the preceding year to 25 December of the current year.” Section 5(f) of the original rules deleted; remaining sub-paragraphs renumbered.

Section 3 — Amended: Minimum Annual RPS Requirement (§7) Formula codified: RPS(n) = ES(n-1) × Σ(m=0 to n) Km

  • K0 = FiT-system plant share of total MP energy sales at Year 0 (2018)
  • Km = 1% for 2018–2022; 2.52% from 2023 onwards (per DC2022-09-0030)
  • ES exclusions: MSA sales already counted in Primary Supplier; SOLR transactions for Contestable Customers
  • Year 0 = 2018; Compliance Year 1 = 2020; Transition Period = 2019
  • DU RPS calculation must be included in the Distribution Development Plan

Section 4 — Amended: Mandated Participants (§12) All MPs must comply with least-cost sourcing (CSP) in RE procurement. ERC directed to issue rules on least-cost RE procurement for DU Captive Market within 60 calendar days of effectivity.

Section 5 — New Compliance Mechanism (§15(f)) GEAP and/or its Opt-In Mechanism, and Distributed RE Resources, formally added as a compliance mechanism — subject to DOE determination upon RPSCT recommendation and stakeholder consultation.

Section 6 — New: REC Issuance for Multiple Suppliers Arrangement (§17(f)(v)) Where multiple suppliers serve one end-user, RECs are allocated by actual/metered quantities per individual Supplier. Gross energy consumption = sum of all individual Supplier contributions.

Section 7 — Amended: REC Issuance Rules (§17(f)(i), (m), (n))

  • §17(f)(i): Non-FIT RECs go to MP with PSA up to contracted energy; energy dispatched beyond PSA → RECs to facility owner; facility must have commenced commercial ops after RE Act effectivity (2008)
  • §17(m): Compliance period = 26 December → 25 December; REC submission deadline = 25 December of following year
  • §17(n): DOE reviews implementation annually for first 3 years; biennial thereafter

Section 8 — Amended: Carry-Over of Compliance (§25) Two grounds: (a) over-contracting (10-yr supply-demand outlook + PSA filings) or force majeure (RE supply/REC/grid delivery inadequacy); (b) Board Resolution–certified RPS Compliance Plan for carry-over year. Deemed approved after 60 days; clock pauses during rectification.

Section 9 — Amended: Transition Period (§26) 1-year transition from Year 0 (2018). Minor clarification only.

Section 10 — Amended: Regulatory Support (§30) ERC must establish Regulatory Framework within 60 calendar days covering: (a) compliance impacts; (b) compliance cost calculation; (c) cost recovery rationalization.

Pages Updated

  • wiki/pages/programs/rps.md — Added source; added GEAP to compliance mechanisms list (§15(f)); added new “On-Grid RPS: Formula, Compliance Period, and Key Rules” section with sub-sections for Generation Mix definition, RPS formula table, compliance period, CSP-RPS linkage, ERC regulatory framework, DOE review cycle, carry-over procedure; updated Key DCs table entry for DC2023-05-0015
  • wiki/pages/concepts/rem.md — Added source; added new “REC Issuance Rules” section covering §17(f)(i) PSA-based attribution, §17(f)(v) MSA allocation, §17(m) compliance period, §17(n) review cycle
  • wiki/pages/programs/geap.md — Added new “GEAP as Formal RPS Compliance Mechanism” section noting DC2023-05-0015 §15(f) formal listing

Full text: Cleaned copy